TaxTMI 
TaxTMI 
2021 (8) TMI 740
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....stem-Pumps coupled with motor-provides water flow from chiller to AHU and other heat exchange equipment. Plant Area-Movable 3. Piping works Piping with insulation-supported on fabrication. Plant Area-Non Movable 4. Ducting & Insulation work Supported from ceiling or on fabrication structure-so there is no vibration. Plant Area-Non Movable 5. HVAC related ELE-work Cables on cable trays and control panel are fixed at location. Plant Area-Movable 6. Process Water System Chiller+Pumping system for cooling process equipment-so that it can provide better efficiency. Plant Area-Movable 7. Moulding Area Exhaust System Supported from ceiling or on fabrication structure-so that there is no vibration. Plant Area-Movable 8. GF-Assembly Area Exhaust System Supported from ceiling or on fabrication structure-so that there is no vibration. Plant Area-Movable 9. HVAC BMS Only controller and PC. Plant Area-Movable 10. Tool Room Process Water System Chiller + Pumping system for cooling process equipment-so that it can provide better efficiency. Plant Area-Movable 11. Tool Room Process Water System....
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....ry registered person shall, subject to such conditions and restrictions as may be prescribed and in the manner specified in section 49, be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business and the said amount shall be credited to the electronic credit ledger of such person. (2) Notwithstanding anything contained in this section, no registered person shall be entitled to the credit of any input tax in respect of any supply of goods or services or both to him unless,-- (a) he is in possession of a tax invoice or debit note issued by a supplier registered under this Act, or such other tax paying documents as may be prescribed; (b) he has received the goods or services or both. Explanation.-For the purposes of this clause, it shall be deemed that the registered person has received the goods where the goods are delivered by the supplier to a recipient or any other person on the direction of such registered person, whether acting as an agent or otherwise, before or during movement of goods, either by way of transfer of documen....
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....er civil structures; ii. Telecommunication towers, and iii. Pipelines laid outside the factory premises. GST law defines 'plant & machinery' which means * apparatus, equipment and machinery. * Fixed to earth by foundation or structural support. * That are used for making outward supply of goods or services or both and * Includes such foundation and structural supports. (iv) Section 17(5)(c)/(d) attracted only in case of Immovable Property: On combined reading of Section 17(5)(c)(d), it can be inferred that clause(c) and (d) of Section 17(5) shall be applicable only in case of immovable property i.e. if something is movable then blockage of input tax credit is not attracted under the said clauses and that in case of movable property, the entitlement to input tax credit shall be governed by Section 16(1) of the CGST Act. As per Section16(1), every registered person shall be entitled to take credit of input tax charged on any supply of goods or services or both to him which are used or intended to be used in the course or furtherance of his business. Thus, in case of movable property, full input tax credit shall be eligible a....
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....as necessary to provide a wobble free operation to the machine. An attachment of this kind without the necessary intent of making the same permanent cannot, in our opinion, constitute permanent fixing, embedding or attachment in the sense that would make the machine a part and parcel of the earth permanently. In that view of the matter we see no difficulty in holding that the plants in question were not immovable property so as to be immune from the levy or excise duty. The activity is amount to manufacture. (b) In CCE, Chennai vs. Kone Elevators India ltd.[2001 (6) TMI 142-CEGAT, Chennai-2001 (138) ELT 635 (Tri-Chennai)], it was observed and held that the assessee's activity of entering into contracts with the customers for supply of lifts by installation and commissioning of the same at buyer's site with warranty of certain period would not be goods classifiable under Chapter 84.28. The tribunal has gone through various stages of installation of the lift in the building and has come to the conclusion that erection brings into existence as immovable property and is not goods. (c) In Sirpur Paper Mills ltd. vs. Collector of Central Excise, Hyderabad[1998 (97) ELT.....
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.... can be said to be capable of being brought to the market for being sold. It was found that both the tests were not satisfied and, therefore, the tube mill and welding head erected by the appellant were not exigible to excise duty. It was held that erection and installation of a plant could not be held to be excisable goods and if such wide meaning was assigned, it would result in bringing in its ambit structures, erections and installations which would surely not be in consonance with accepted meaning of excisable goods and its eligibility to duty. (f) In Mittal Engineering Works(P)ltd. vs. Collector of Central Excise, Meerut[1996 (88) ELT.622 (SC)-1997 (1) SCC 203], Mono vertical crystallisers are used in sugar factories to exhaust molasses of sugar. The component parts of mono vertical crystallisers were cleared on payment of excise duty from the premises of the appellants therein and they were then assembled, erected and attached to the earth at the site of the customers' sugar factory. The process involved welding and gas cutting. The CEGAT held that the mono vertical crystalliser was complete when it left the factory and upheld the demand of excise duty on clear....
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....oard. (i)........... (ii).......... (iii) Refrigeration/Air conditioning plants. These are basically systems comprising of compressors, ducting, pipings, insulators and sometimes cooling towers etc. They are in the nature of systems and are not machines as a whole. They came into existence only by assembly and connection of various components and parts. Though each component is dutiable, the refrigeration/air conditioning system as a whole cannot be considered to be excisable goods. Air conditioning units, however, would continue to remain dutiable as per the Central Excise Tariff. Thus, centralised air conditioning unit is a combination of various components comprising of compressors, ducting, pipings, insulators and cooling towers etc. which results into immovable plant and machinery. 4. The applicant has stated that on the basis of the above discussions, it can very well be concluded that the basic premise whether to claim ITC on goods and/or services which are procured by applicant company will depend on the fact that whether such Capital goods/Plant and Machinery is movable or not. • If Capital goods/Plant & Machinery is movable th....
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....entilation/fresh air to plant/admin area and includes factory toilet & plant room ventilation, admin area toilet & kitchen ventilation work, utility building ventilation work, factory office fresh air system, utility building fresh air system and admin area fresh air system. Photographs submitted pertaining to Air conditioning and cooling system are as follows: Photographs submitted pertaining to Ventilation systems: Question on which Advance Ruling sought: 6. The applicant has sought Advance Ruling as follows: "The applicant wishes to know the admissibility of input tax credit of GST paid on the procurement of plant and machines (mentioned in para-3 above) including the service of installation and commissioning the same in terms of the provisions of Section 16 and 17 of the CGST Act, 2017." Personal hearing: 7. Shri Chitresh Gupta, CA appeared for hearing (video conferencing) on 17-6-21. Further, as requested by the applicant another hearing was granted on 30-6-21, wherein Shri Chitresh Gupta, C.A. and Shri Anil Kumar appeared for the hearing and reiterated the contents of the application. FINDINGS: 8. At the outset we would like to make it clear t....
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....ee and Contract Performance Bank Guarantee is required to be executed by the SKAI along with one year maintenance service. It has also been specified in the tender that the work of erection of equipment/system/ancillary work can be considered to be complete only if the following activities have been satisfactorily completed: System/equipment: a. Levelling, alignment of the base-frame, tightening of mounting bolts, alignment of drives. b. Installation of all accessories and instruments, which form a part of the equipment. c. Cleaning and charging of lubricant. Ducting: a. Assembly of a complete section of duct from one end point to another, including all dampers, flexible connections, access doors, frames, bracing etc. b. Levelling and alignment, fixing of all supports. c. Cleaning the duct from inside and blanking off open ends temporarily to prevent entry of dust and dirt, if necessary. Electric Panels and Cabling: a. Permanent supporting and clamping of cables in position. b. Fixing of glands and lugs and terminating the cables on the terminals of equipment/panel. c. Levell....
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....sheet metal ducts(factory fabricated ducts) with accessories like veins, flanges, guide vens as per technical specification, flexible duct for equivalent connecting fresh air ducting and cassette ac indoor units fresh air connection, fabrication and erecting structure steel for support etc. 10.3 The invoices in respect of supply of services include: (1) Invoice No.943/2020-21 dated 31-3-2021 pertaining to labour charges for MS C Class pipes, Butterfly valves, BF with motorised Actuators, Balancing valves, Y-strainers, pressure gauges, temperature gauges, Auto purge valves, drain valves, flexible connection, structure, steel, manifolds, etc. valued at Rs. 24,45,781/-. (2) Invoice No.694/2020-21 dated 28-1-2021 pertaining to labour charges for ducting work, grill with VCD, swirl defuser with fixed deflectors, Thick thermal insulations valued at Rs. 17,53,182/- (3) Invoice No.944/2020-21 dated 31-3-2021 pertaining to labour charges for ducting work, grill with VCD, swirl defuser with fixed deflectors, , swirl defuser with fixed deflectors, structure steel for support, Thkammasound, Thk insulation, Anchor Fasteners, Threaded rods, GI PU coatee channel, Spe....
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....he personal hearing has stated that the process water system is attached to the moulding machine. However, we find no specification of moulding machine to be fitted with any further system/ sub system to function as a moulding machine. We find that all the parts of Air conditioning and cooling system get assembled at the site and fitted on the wall and roof and the floor of the building. All the different parts of 'Air conditioning and cooling system' after being fitted in the building loose their identity as machines or parts of machines and become a system, namely Air conditioning and cooling system. This AC System is in nature of a system and not machine as a whole. It come into existence only by assembly and connection of various components and parts. Though each component is dutiable to GST, the air conditioning plant as such is not a good under HSN (customs Tariff Heading). We note that Air conditioning unit, however, is dutiable as per HSN but not Air conditioning plant. We find no merit to assume the central air conditioning system as a machine. We find it apt to refer to CBEC Order No. 58/1/2002-Cx dated 15-1-2002 issued for the purpose of uniformity in connection with ....
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....annot be called 'Air conditioning system' after it is dismantled. Further, Air Conditioning system once installed and commissioned in the building is transferred to the building owner and this involves transfer of property. We thus find no merit to treat an entire Central Air conditioning system a movable property. We find that our view is in compliance to Judicial Discipline as laid down vide the following case laws: 1. Commissioner of C. Ex., Indore Vs. Virdi Brothrs 2007 (207) ELT 321 (S.C.) [ Para 2,6,7] 2. Commissioner of C. Ex., Indore Vs. Globus Stores (P) Ltd. 2011 (267) ELT (435) (S.C.) [ Para 3] 3. Voltas Ltd. Vs. Commissioner of Centralised, Mumbai -VII 2011 (270) ELT 541 (Tri- Mumbai) [Para 5,8] iv. Further, we note that the supply and erection of subject immovable property- Central Air conditioning system merit its classification under works contract service. iv. When Hon'ble Supreme Court [2011 (267) ELT (435) (S.C.)] has termed Air conditional Plant as an immovable property, we find no reason to dwell on this issue further. We refer to Article 141 of our Constitution, "141. Law declared by Supreme Court to be binding on....
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....8/1/2002-Cx dated 15-1-2002, the relevant extract is reproduced as follows and we hold that its rationale and concept is relevant under GST scheme of law also: "(vi) The If the goods are incapable of being sold, shifted and marketed without first being dismantled into component parts, the goods would be considered as immovable and therefore not excisable to duty." Thus, 'Ventilation system' is a combination of various components and partsresulted into an immovable property. Further as per the Hon'ble Supreme Court's ' test of permanency' laid down in Municipal Corporation of Greater Bombay &ors. V. Indian Oil Corporation Ltd. [199 Suppl. SCC 18], we find the Ventilation System passed the test of permanency. 12. We find that the cited CBEC Order No. 58/1/2002-Cx dated 15-1-2002 was issued for the purpose of uniformity in connection with classification of goods erected and installed at site,as plethora of judgments appear to have created some confusion with the assessing officers, the matter was been examined by the Board (CBEC) in consultation with the Solicitor General of India. For issuance of this said CBEC Order, a number of Apex Court judgments delivered on this ....